Mobis Parts Australia Pty Ltd v XL Insurance Company SE (No 7) [2017] NSWSC 1321

Mobis Parts Australia Pty Ltd v XL Insurance Company SE (No 7) [2017] NSWSC 1321

Mobis is entitled to indemnity under the Local Policy as the warehouse collapse was caused by hail but the Local Policy, as issued, did not contain a hail limit and should not be rectified to include one; the Faulty Design Exclusion was not enlivened as XL failed to prove the design was not up to the required Australian Standard; damages are subject to quantum findings, with allowanced deductions and savings. Mobis cannot recover under the Master Policy absent proceedings brought by the named Policyholder, and UNIQA bears no liability for claims arising in Australia.

Parties
Plaintiff: Mobis Parts Australia Pty Ltd; First Defendant: XL Insurance Company SE; Second Defendant: AIG Europe Limited; Third Defendant: UNIQA Versicherungs AG
Jurisdiction
Australia
Judgment Date
29 September 2017
Procedural Posture
Principal Judgment / Trial
Outcome
Mobis entitled to indemnity under the Local Policy (subject to quantum determination); Local Policy not rectified to include hail limit; Quantum and certain calculations reserved for further submission; Mobis's notice of motion against UNIQA dismissed.
Legal Topics
Indemnity Under Property Damage and Business Interruption Policy, Policy Construction and Rectification, Faulty Design Exclusion, Loss, Destruction or Damage to Stock, Business Interruption, Standing Under Composite Policy
Insurance Law Contract Indemnity Under Property Damage and Business Interruption Policy Policy Construction and Rectification Faulty Design Exclusion Loss, Destruction or Damage to Stock Business Interruption Standing Under Composite Policy

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Parties

Mobis Parts Australia Pty Ltd

Plaintiff

XL Insurance Company SE

First Defendant

AIG Europe Limited

Second Defendant

UNIQA Versicherungs AG

Third Defendant

Procedural Posture

Principal Judgment / Trial

Legal Issues

  1. 1 Whether plaintiff is entitled to indemnity under the Local Policy for warehouse collapse
  2. 2 Whether the Local Policy should be rectified to incorporate the Hail Limit
  3. 3 Whether collapse was caused by hail or storm and if hail limit applies

Ratio Decidendi

Mobis is entitled to indemnity under the Local Policy as the warehouse collapse was caused by hail but the Local Policy, as issued, did not contain a hail limit and should not be rectified to include one; the Faulty Design Exclusion was not enlivened as XL failed to prove the design was not up to the required Australian Standard; damages are subject to quantum findings, with allowanced deductions and savings. Mobis cannot recover under the Master Policy absent proceedings brought by the named Policyholder, and UNIQA bears no liability for claims arising in Australia.

Court Disposition

Mobis entitled to indemnity under the Local Policy (subject to quantum determination); Local Policy not rectified to include hail limit; Quantum and certain calculations reserved for further submission; Mobis's notice of motion against UNIQA dismissed.

Orders

  • Mobis entitled to indemnity under the Local Policy, subject to quantum findings.
  • The question of indemnity under the Master Policy does not arise.